Australian Dollar Monthly

The Australian dollar was the strongest member of the G10 currency basket in March, boosted by strong market sentiment that sent global equities to record highs. The AUD trade-weighted index spiked to a two-month high on 21 March, following the release of the strong Aussie February employment report, before falling back.

The Australian dollar slipped against the US dollar in February, its second monthly decline in a row to open 2024.

The Australian dollar suffered its first monthly decline against the US dollar since October last year. The depreciation was driven by a rebound in the greenback following back-to-back monthly losses. The AUD was also weaker against the remainder of the G10 currency basket except for the Japanese yen.

The Australian dollar appreciated for the second month in a row against the greenback in December, driven by ongoing weakness in the US dollar and strength in the AUD as market sentiment continued to improve.

The Australian dollar posted its first monthly increase against the US dollar in four months, climbing over 4% over the month. Most of the increase was driven by weakness in the greenback, however, the Aussie also appreciated against the other major currencies and was one of strongest of the G10 trading currencies, behind only the Swedish krone and New Zealand dollar.

The Australian dollar fell for the third month in a row against the greenback in October and also slipped against the other major currencies with the exception of the Japanese yen. The Aussie was weighed down by the increase in financial market volatility in the wake of Hamas’ attack on Israel and the further escalation of violence in the Middle East.